Small businesses will be turbocharged by tax cuts, giving them the confidence to spend big and hire new staff, industry groups says.
Immediate increases in tax deductions and reduced red tape will also help to stimulate Australia's two million small enterprises, the Australian Chamber of Commerce and Industry said.
"This budget recognises that it is business, not government, that generates wealth, creates jobs and grows the economy," ACCI chief executive Kate Carnell said.
The Business Council of Australia welcomed the budget as a sound and sensible plan for the years ahead.
"The budget is without doubt a shot in the arm to small business, and creates a better environment for business confidence that will drive investment, job creation and economic growth," chief executive Jennifer Westacott said.
With no changes to superannuation, the Financial Services Council was also pleased.
PwC chief executive Luke Sayers welcomed the measures to lift employment and productivity, though he said the budget could be considered "beige".
He also warned that the government's plan to lower the corporate tax rate to 28.5 per cent for small businesses with turnovers of less than $2 million would divide tax systems for small and large firms and could hinder growth.
"If the two-tiered corporate tax system is maintained over the longer term, the risk is that it could stymie growth as companies try to avoid the threshold that tips them into the higher tax bracket," Mr Sayers said.
"We support a steady transition to a single, low corporate tax rate for all companies."
Master Builders Australia said about 300,000 building and construction firms stood to benefit from the budget.
"The $5.5 billion small business package will massively boost confidence, activity and jobs in the industry," chief executive Wilhelm Harnisch said.
"In an industry as capital intensive as building and construction, the immediate write off of assets up to $20,000 will provide an immediate stimulus."
But accounting body CPA Australia said the budget lacked vision for the nation, neglecting serious structural reforms.
"It's evident that the government has been spooked by the negative reception it got from its first budget," chief executive Alex Malley said.
And industry representatives warned the small business measures will need to be supported in the Senate before the benefits are realised.
"Australian business cannot afford to see the gridlock of the past year continue," Ms Carnell said.
"The government should move swiftly to bring to the parliament the legislation to enact its budget, and the crossbenchers and opposition should give serious consideration to these bills."
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